PENN WEST PETROLEUM LTD.

Transcription

1 PENN WEST PETROLEUM LTD. NEWS RELEASE Penn West Petroleum Ltd. Announces the Commencement of Carbon Dioxide Injection into the Pembina Oil Field FOR IMMEDIATE RELEASE, Thursday, March 31, 2005 PENN WEST PETROLEUM LTD. (TSX PWT) commences carbon dioxide injection at the Pembina Cardium enhanced oil recovery pilot project Penn West Petroleum Ltd. ( Penn West ) is pleased to announce the commencement of carbon dioxide ( CO2 ) injection at the Pembina Cardium enhanced oil recovery pilot project. This is the first phase of field work that will test the use of CO2 capture and injection to improve recovery from the multibillion barrel Pembina Cardium oil pool. If successful, the pilot project could lead to a large scale project that will provide the ability to capture CO2 from heavy industry in Alberta, and significantly reduce associated greenhouse gas emissions through CO2 sequestration. As an added benefit, a successful large scale project will provide additional recovery of oil and the continued revitalization of Canada s largest conventional oil pool. The initial phase of the Pembina Cardium enhanced oil recovery pilot project has a cost of $15 million that is being shared through a cooperative effort of the Government of Canada, the Government of Alberta and Penn West under incentive programs to explore the potential and benefits of CO2 capture and storage. Penn West Petroleum Ltd. is a senior independent Canadian oil and natural gas company based in Calgary, Alberta. Penn West focuses on exploration and development activity in the Western Canadian Sedimentary Basin. Penn West trades on the Toronto Stock Exchange under the symbol PWT. PENN WEST PETROLEUM LTD. William Andrew, President

2 PENN WEST PETROLEUM LTD. NEWS RELEASE PENN WEST PETROLEUM ANNOUNCES RECEIPT OF SATISFACTORY INCOME TAX RULING FOR IMMEDIATE RELEASE, Monday, April 11, 2005 The Board of Directors of Penn West Petroleum Ltd. (TSX PWT) is pleased to announce the receipt of a satisfactory income tax ruling ( the Ruling ) for its plan to convert the assets and operations of Penn West through a proposed Plan of Arrangement (the Plan ) into an energy income trust. After the close of markets on April 8, 2005, the Company received the Ruling from the Canada Revenue Agency ( CRA ) that the Board has reviewed and considers to be satisfactory with respect to the income tax consequences of the previously announced reorganization of the Company. Under the Plan, shareholders of Penn West will receive three trust units for each common share of Penn West currently held. The Ruling confirms that disposing shareholders who hold their shares as capital property will receive capital gains treatment on the exchange of their shares for units and also confirmed the tax consequences of the flow of funds between the operating subsidiary of the trust and the trust. Although it was originally anticipated that shareholders would be offered the opportunity to receive exchangeable shares (that would have afforded shareholders a tax-free roll over of their common shares in the trust conversion transaction) in lieu of trust units, this opportunity was deleted from the Plan after initial consultations with the CRA in order to expedite the receipt of the Ruling. Penn West Energy Trust, the entity to be created under the Plan, (the Trust ) will conduct an active exploitation and development program on its properties and pursue selective exploration projects on its extensive undeveloped land base. The Trust plans to reinvest approximately 40% of its cash flow on these activities, including the on-going development through tertiary recovery projects of its considerable light oil reserve base located in the Pembina area, and distribute approximately 60% of its cash flow to unitholders. Penn West believes that the reorganization is in the best interest of shareholders for the following reasons: Improves financial structure through the flexibility to direct cash flow to a combination of internal capital projects, debt reduction and distributions to unitholders; Creates a single entity to focus on creating value from its existing diversified asset base that has opportunities for several years of low risk exploitation and development; Channels exploration efforts to lower risk opportunities over a wide area while partnering with exploration focused companies to participate in grassroots exploration to improve capital efficiency performance; Provides for operating the existing balanced portfolio of world-class assets, located in the Western Canadian Sedimentary Basin, much as in the past, to optimize netbacks, but in a more tax efficient structure, and Improves competitiveness in making strategic acquisitions to create long term value. The Annual and Special Meeting of the Company to approve the Plan is expected to take place on May 27, The Information Circular describing the Plan is expected to be mailed at the beginning of May. Closing of the Plan is subject to the finalization and execution of transaction documentation, shareholder and court approval and applicable regulatory filings. The Plan will require approval of sixty six and two thirds per cent of votes cast by shareholders at the Special Meeting. As at March 31, 2005 Penn West had 53,932,596 common shares outstanding and has granted options to purchase 3,513,720 shares. Page 1 of 3

3 Since the Company was re-capitalized under new management in 1992, Penn West has grown from a small junior oil and natural gas exploration and development company into one of the top five Canadian independent crude oil and natural gas producers. During this period of time the Company has invested almost $5 billion dollars in capital expenditures with shareholders providing only $490 million (10%) of the financing through equity issues. The Company has grown reserves of crude oil and natural gas at a compound average growth rate, since 1992, of over 38%. Production has grown at a compound average growth rate of over 42% and cash flow has grown at a compound average growth rate of over 65% over the same time period. The Company has accumulated a diversified and balanced portfolio of assets of which the Company operates over 86% of production with a working interest of over 90%. On conversion to an income trust, the Company, on a production volume basis, would be the largest conventional oil and natural gas trust in North America. Total Company Interest proved plus probable reserves evaluated 100% by Gilbert Laustsen Jung Associates Ltd. as at December 31, 2004 were 370 million barrels of oil equivalent ( boe ). The reserve life index ( RLI ) for light and medium crude oil, which represents 49% of the Company s reserves, is approximately 14 years. Heavy oil reserves representing 17% of the Company s reserves have a RLI of approximately 9 years and natural gas reserves comprising 34% of reserves have a RLI of approximately 7 years. The expected RLI for the Trust, on a proven plus probable basis, will be approximately 10 years. All RLI calculations are based on production volumes at the end of Proved producing reserves represent over 82% of the evaluated proved reserves of 310 million boe. As at December 31, 2004, the Company had accumulated a significant inventory of undeveloped lands totalling almost 5.8 million acres which provides an excellent base for future internal development and farm-out opportunities. Subsequent to the announcement by the Board of Directors on August 20 th, 2004 recommending the conversion of all the assets of Penn West into an income trust, management has pursued a business as usual approach to the operations of the Company. As we effect conversion to the new structure, management will continue to focus on development of lower risk projects throughout our core areas including enhanced light oil recovery projects, conventional heavy oil development, emerging light oil plays and numerous shallow to medium depth natural gas projects. Higher risk opportunities on our extensive undeveloped land base which are unsuited to a trust s preferred risk profile will be reviewed for potential farm-out to exploration focused companies enabling the Trust to participate in grassroots exploration without risking unitholders capital. Penn West s proven management intends to exploit its experience in making carefully selected, strategic acquisitions that add long term value. Potential acquisitions will be reviewed not only for their cash flow, but also for their potential for enhancements, efficiency improvements, new production and reserves and other opportunities over a multi year period. The reorganization will have little impact on the operations of the Company which will continue to be performed by the present management and employees of Penn West through an administration agreement with the Trust. A compensation program will be introduced that aligns unitholder, employee and management interests. The Trust will make monthly distributions to investors while retaining sufficient financial flexibility to fund its on-going program of exploration, exploitation and development projects. Tax Implications For Penn West shareholders resident in Canada, the conversion of Penn West common shares into trust units will result in a disposition, generally giving rise to a gain or loss for tax purposes. United States residents will generally be exempt from Canadian taxation in respect of the disposition. Subject to listing, the trust units will be eligible for RRSP s, RRIF s and registered pension plans. Cash distributions on the trust units to United States residents will be subject to Canadian statutory withholding tax as reduced by treaty. Financial Advisors BMO Nesbitt Burns and CIBC World Markets are acting as financial advisors on the proposed reorganization and have advised the Board of Directors of Penn West that they are of the opinion, subject to their detailed review of the advance income tax ruling and their review of the final form of the documents relating to the Plan, that the consideration to be received pursuant to the Plan is fair from a financial point of view to the Penn West shareholders. Page 2 of 3

4 Investor Information Penn West Petroleum Ltd. is a senior independent Canadian oil and natural gas company based in Calgary, Alberta. Penn West focuses on exploration and development activity in the Western Canadian Sedimentary Basin. Penn West trades on the Toronto Stock Exchange under the symbol PWT. Notes to Reader 1.) This document contains forward-looking statements (forecasts) under applicable securities laws. Forward-looking statements are necessarily based upon assumptions and judgements with respect to the future including, but not limited to, the outlook for commodity markets and capital markets, the performance of producing wells and reservoirs, and the regulatory and legal environment. Many of these factors can be difficult to predict. As a result, the forward-looking statements are subject to known or unknown risks and uncertainties that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. 2.) All dollar amounts contained in this document are expressed in Canadian dollars unless noted otherwise. 3.) Where applicable, natural gas has been converted to barrels of oil equivalent (boe) using a conversion rate of 6 mcf of natural gas equals 1 boe. However, this could be misleading if used in isolation. A boe conversion of 6:1 is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. PENN WEST PETROLEUM LTD. William Andrew, President Page 3 of 3

5 PENN WEST PETROLEUM LTD. NEWS RELEASE PENN WEST PETROLEUM LTD. ISSUES CLARIFICATION ON ARRANGEMENT FOR IMMEDIATE RELEASE, Wednesday, May 25, 2005 PENN WEST PETROLEUM LTD. (TSX PWT) issues clarification on arrangement Penn West Petroleum Ltd. announces that it has had an opportunity to discuss with Ontario Teachers' Pension Plan ("Teachers'") its concerns relating to Penn West's proposed Plan of Arrangement which, if approved, will have the effect of converting Penn West into an income trust, and to various matters related to the Arrangement and the Annual and Special Meeting of holders of common shares and holders of options. Penn West has clarified to Teachers' that it was always Penn West's intention, in accordance with the usual practice for the tabulation of voting results in relation to matters such as the Arrangement, to have the scrutineers count the votes of the shareholders and optionholders separately and to make such count available to its shareholders at the Meeting and to the Court in connection with its consideration of the fairness of the Arrangement. Penn West will also publicly announce such count promptly after the Meeting. In addition, Penn West provides further clarification in connection with the vesting of the options, which occurs on the conversion of Penn West into an income trust. The vesting was approved by the independent members of the Penn West Board of Directors and determined by such independent directors to be in the best interests of Penn West and its shareholders. Penn West appreciates the views expressed by Teachers' that, in certain circumstances, the acceleration of the vesting of options in conjunction with the conversion to an income trust may not be in the best interests of a corporation or to its shareholders. However, in the case of Penn West, the independent members of the Board of Directors, none of whom held options, made the decision in the best interests of Penn West and its shareholders to vest the options after consideration of financial information and legal advice taking into account, among other things: (i) (ii) (iii) (iv) (v) the after tax cost to Penn West of an acceleration of the vesting of the options in conjunction with the Arrangement to purchase common shares and the benefit to Penn West of such tax deduction; the change in the nature of the underlying security for which the option is exercisable and the potentially resulting negative income tax consequences to employees of Penn West of the substitution of options to purchase trust units for options to purchase common shares; the treatment and associated accelerated vesting of options which has taken place in recent comparable income trust conversions; the impact to Penn West with respect to employee retention arising from various alternative treatments of the options and replacement incentive plans; the overall benefits of the Arrangement to Penn West and its common shareholders, including the absence of any exchangeable shares as part of the Arrangement; and Page 1 of 2

6 (vi) the structure of the Arrangement and the resulting benefit to Penn West and its shareholders of full participation in all of the assets of Penn West on a go forward basis, due to the absence in the Arrangement of a spin-out exploration company with a high percentage of management participation in the initial capitalization of the spin-out exploration company. The senior officers who will be affected by the accelerated vesting determination are Messrs. Bryan D. Clake, David Middleton, Donald J. Rae, Gerry J. Elms, N. Murray Edwards, Phil Reist, Thane Jensen and William E. Andrew, all of whom except Mr. Edwards hold less than 1% of the issued and outstanding common shares of Penn West. The unvested options held by the eight named senior officers represent 19.0% of the total unvested options, with the remaining 81% being widely held by other employees of Penn West. Mr. Edwards holds, directly or indirectly, 3,472,184 common shares of Penn West, representing 6.4% of the issued and outstanding common shares, which is a greater percentage than the percentage of unvested options held by Mr. Edwards. The independent members of the Board of Directors of Penn West, none of whom hold any options, determined that the benefit to Mr. Edwards of the accelerated vesting of the unvested options was less than 5% of the amount of the consideration to be received by Mr. Edwards under the Arrangement. Penn West Petroleum Ltd. is a senior independent Canadian oil and natural gas company based in Calgary, Alberta. Penn West focuses on exploration and development activity in the Western Canadian Sedimentary Basin. Penn West trades on the Toronto Stock Exchange under the symbol PWT. PENN WEST PETROLEUM LTD. William Andrew, President Page 2 of 2

7 PENN WEST PETROLEUM LTD. NEWS RELEASE PENN WEST PETROLEUM LTD. ANNOUNCES RESULTS OF MEETING AND COURT APPLICATION FOR IMMEDIATE RELEASE, Friday, May 27, 2005 PENN WEST PETROLEUM LTD. (TSX PWT) announces results of meeting Penn West Petroleum Ltd. announces that at the Annual and Special Meeting of holders of Common Shares and Options held on May 27, 2005 that the proposed Plan of Arrangement for the conversion of Penn West into Penn West Energy Trust was approved by holders of Common Shares and Options by 23,516,208 votes for and 1,880,211 votes against (or 92.6% of the total votes for). In addition, the Plan of Arrangement was approved by 20,524,683 votes for and 1,880,211 votes against by shareholders (or 91.6% of the total votes of shareholders for) and approved by 2,991,525 votes for (100% of the total votes of optionholders for). The resolution to approve a Trust Unit Rights Incentive Plan and ratify, approve and authorize the grant of 7,500,000 rights was approved by holders of Common Shares by 19,464,390 votes for and 6,413,397 votes against (or 75.2% of the total votes for). In addition, the resolution to approve an Employee Trust Unit Savings Plan was approved by 25,868,072 votes for and 2,453,476 votes against (or 91.3% of the total votes for). The Court of Queen's Bench of Alberta approved the Plan of Arrangement and the filing of Articles of Arrangement. Penn West anticipates that the Arrangement will become effective on or about May 31, Penn West Petroleum Ltd. is a senior independent Canadian oil and natural gas company based in Calgary, Alberta. Penn West focuses on exploration and development activity in the Western Canadian Sedimentary Basin. Penn West trades on the Toronto Stock Exchange under the symbol PWT. PENN WEST PETROLEUM LTD. William Andrew, President

8 PENN WEST PETROLEUM LTD. NEWS RELEASE PENN WEST PETROLEUM LTD. ANNOUNCES COMPLETION OF TRUST REORGANIZATION FOR IMMEDIATE RELEASE, Tuesday, May 31, 2005 PENN WEST PETROLEUM LTD. (TSX PWT) completes trust reorganization Penn West Petroleum Ltd. ("Penn West") is pleased to announce the completion of the Plan of Arrangement (the Plan ) effective May 31, 2005 by which Penn West will be transformed into the Penn West Energy Trust (the Trust ). Pursuant to the Plan, holders of common shares of Penn West will receive three trust units ("Units") of the Trust for each common share held. It is currently expected that the common shares of Penn West will trade until the close of trading on June 1, 2005 and the Units will commence trading on June 2, 2005 under the symbol "PWT.UN". The Trust will have 163,138,268 Units outstanding. Average annual production for 2005 is estimated to be between 98,000 and 101,000 boe per day. Assuming average 2005 commodity prices of $48.50 per barrel of WTI crude oil, a NYMEX natural gas price of US$6.70 per MMBTU and a currency exchange rate of $0.82 CAD/USD, 2005 cashflow, excluding realized foreign exchange gains, is estimated to be between $850 to $900 million. The initial monthly distribution of the Trust will be paid on July 15, 2005 to Unitholders of record on June 30, 2005 and will be $0.26 per Unit, equivalent to $0.78 for each Penn West common share held at the time of the Plan. This distribution level is in keeping with the range of $0.23 to $0.26 per Unit previously announced, and is in keeping with Penn West s objective of distributing approximately 60% of its cash flow. Penn West Petroleum Ltd. is a senior independent Canadian oil and natural gas company based in Calgary, Alberta. Penn West trades on the Toronto Stock Exchange under the symbol PWT. PENN WEST PETROLEUM LTD. William Andrew, President

9 PENN WEST ENERGY TRUST NEWS RELEASE PENN WEST ENERGY TRUST ANNOUNCES CRUDE OIL HEDGES FOR IMMEDIATE RELEASE, Friday, June 10, 2005 PENN WEST ENERGY TRUST (TSX PWT.UN) enters WTI crude oil hedges Penn West Petroleum Ltd. ( Penn West ), as administrator of Penn West Energy Trust, announces the acquisition of crude oil (WTI) collars with a total volume of 20,000 barrels of crude oil per day for the 18 months commencing July 1, 2005 and ending December 31, These collars were transacted with an average floor price of US$ per barrel and an average ceiling price of US$ per barrel. The volume hedged represents approximately 40% of liquids production and approximately 20% of total production on a barrel of oil equivalent (6 to 1) basis. The acquisition of these collars is consistent with policies established by the Board of Directors of Penn West. Penn West Energy Trust is a senior oil and natural gas energy trust based in Calgary, Alberta that trades on the Toronto Stock Exchange under the symbol PWT.UN. PENN WEST ENERGY TRUST

10 PENN WEST ENERGY TRUST NEWS RELEASE PENN WEST ENERGY TRUST ANNOUNCES APPOINTMENT OF OFFICERS FOR IMMEDIATE RELEASE, Monday, June 13, 2005 PENN WEST ENERGY TRUST (TSX PWT.UN) announces the appointment of officers Penn West Energy Trust ( Trust ) is pleased to announce the appointment of officers to Penn West Petroleum Ltd. ( Penn West ), administrator of the Trust. William Andrew, P.Eng., President and Chief Executive Officer David Middleton, P.Eng., Executive Vice President ( VP ) and Chief Operating Officer Thane Jensen, P.Eng., Senior VP, Exploration and Development Todd Takeyasu, C.A., VP, Finance William Tang Kong, P.Eng., VP, Corporate Development Kristian Tange, M.B.A., VP, Business Development Anne Thomson, P.Geol., VP Exploration and Gregg Gegunde, P.Eng., VP Development Eric Obreiter, P. Eng., VP Production Bill is a graduate of the University of Prince Edward Island and the Technical University of Nova Scotia with over thirty years of oil and natural gas industry ( industry ) experience including fourteen years with Penn West. He has been the President of Penn West since Dave is a graduate of the University of Toronto with over twenty-five years of industry experience and has been with Penn West since 1999, most recently as Senior Vice President, Production. Thane is a graduate of the University of Oklahoma with over fifteen years of industry experience. He joined Penn West in 1998 and was most recently Vice President, Engineering. Todd is a graduate of the University of Lethbridge and a Certified Internal Auditor with over eighteen years of industry experience. He has been with Penn West since 1994 in roles of increasing responsibility, most recently as Treasurer. William is a graduate of the University of Calgary with degrees in Engineering and Geology and has twenty years of industry experience. He has been with Penn West since William is responsible for creating opportunities from the Trust s extensive land base in western Canada and for evaluating other opportunities for value enhancement for Trust Unitholders. Kristian is a graduate of the University of Calgary and joined Penn West in 1995 where he was most recently Manager, Marketing. Kristian will be responsible for pursuing opportunities for the Trust from alternative energy sources and from enhancement of the Trust s major oil producing properties through tertiary recovery including the lead role in the Pembina CO2 Project. He will also have responsibility for the marketing of the Trust s natural gas, crude oil and natrural gas liquids production. Anne is a graduate of the University of Calgary with over twenty-one years of industry experience including five years in roles of increasing responsibility with Penn West. Gregg is a graduate of the University of Calgary with fifteen years of industry experience. Anne and Gregg will have joint responsibility for managing the core assets of the Trust and for enhancing Unitholder value through exploration and development of these assets. Eric is a graduate of University of Alberta with twenty years of industry experience. Eric will be responsible for optimizing the efficient production of the Trust s producing properties. These appointments recognize the importance of having a strong, experienced and cohesive team to develop, enhance and implement Penn West s strategy for producing superior returns on a sustained basis for Unitholders of Penn West Energy Trust.

11 Penn West Energy Trust is a senior oil and natural gas energy trust based in Calgary, Alberta that trades on the Toronto Stock Exchange under the symbol PWT.UN. PENN WEST ENERGY TRUST Phone (403)

12 NEWS RELEASE PENN WEST ENERGY TRUST ANNOUNCES CASH DISTRIBUTION FOR AUGUST 15, 2005 FOR IMMEDIATE RELEASE, Wednesday, July 20, 2005 PENN WEST ENERGY TRUST (TSX PWT.UN) is pleased to confirm cash distributions for August 15, 2005 (Calgary, July 20, 2005) /CNW/ - Penn West Energy Trust, confirmed today its August 15, 2005 cash distribution will be $0.26 per trust unit. The ex-distribution date is July 27, 2005 and the record date is July 29, Penn West Energy Trust is a senior oil and natural gas energy income trust based in Calgary, Alberta that trades on the Toronto Stock Exchange under the symbol PWT.UN. PENN WEST ENERGY TRUST

13 NEWS RELEASE PENN WEST ENERGY TRUST ANNOUNCES CASH DISTRIBUTION AND NATURAL GAS HEDGES FOR IMMEDIATE RELEASE, Tuesday, August 23, 2005 PENN WEST ENERGY TRUST (TSX PWT.UN) is pleased to confirm cash distributions payable on September 15, 2005 and to announce natural gas hedges (Calgary, August 23, 2005) /CNW/ - Penn West Energy Trust confirms that its August 2005 cash distribution will be $0.26 per trust unit payable on September 15, 2005 to unitholders of record on August 31, The ex-distribution date is August 29, The trust recently entered into AECO natural gas collars on 50,000 gigajoules ( GJ ) per day for the five- month period from November 1, 2005 to March 31, The collars were transacted with an average floor price of $8.00 per GJ (approximately $8.60 per mcf) and an average ceiling price of $15.45 per GJ (approximately $16.60 per mcf). The volume hedged by these contracts represents approximately 16 percent of Penn West s natural gas production and approximately eight percent of total production on a barrel of oil equivalent (6 to 1) basis. The transaction of these collars is consistent with policies established by the Board of Directors of Penn West. Penn West Energy Trust is a senior oil and natural gas energy income trust based in Calgary, Alberta that trades on the Toronto Stock Exchange under the symbol PWT.UN. PENN WEST ENERGY TRUST Toll-Free:

14 NEWS RELEASE PENN WEST ENERGY TRUST ANNOUNCES ADDITIONAL NATURAL GAS HEDGES FOR IMMEDIATE RELEASE, Thursday, September 1, 2005 PENN WEST ENERGY TRUST (TSX PWT.UN) is pleased to announce natural gas hedges (Calgary, September 1, 2005) /CNW/ - Penn West Energy Trust recently entered into AECO natural gas collars on 50,000 gigajoules ( GJ ) per day for the 12-month period from November 1, 2005 to October 31, The collars were transacted with an average floor price of $8.00 per GJ (approximately $8.60 per mcf) and an average ceiling price of $15.05 per GJ (approximately $16.20 per mcf). The volume hedged by these contracts represents approximately 16 percent of Penn West s natural gas production and approximately eight percent of total production on a barrel of oil equivalent (6 to 1) basis. The transaction of these collars is consistent with policies established by the Board of Directors of Penn West. Penn West Energy Trust is a senior oil and natural gas energy income trust based in Calgary, Alberta that trades on the Toronto Stock Exchange under the symbol PWT.UN. PENN WEST ENERGY TRUST Toll-Free:

15 NEWS RELEASE PENN WEST ENERGY TRUST ANNOUNCES ITS MONTHLY CASH DISTRIBUTION FOR SEPTEMBER 2005 AND AN ADDITIONAL NATURAL GAS HEDGE FOR IMMEDIATE RELEASE, Friday, September 23, 2005 PENN WEST ENERGY TRUST (TSX PWT.UN) is pleased to confirm the amount of its monthly cash distribution payable on October 14, 2005 and the transaction of an additional natural gas collar (Calgary, September 23, 2005) /CNW/ - Penn West Energy Trust confirms that its September 2005 cash distribution will be $0.26 per trust unit payable on October 14, 2005 to unitholders of record on September 30, The ex-distribution date is September 28, The trust recently entered into an AECO natural gas collar on 20,000 gigajoules ( GJ ) per day for the 12-month period from November 1, 2005 to October 31, The collar was transacted with a floor price of $9.00 per GJ (approximately $9.70 per mcf) and a ceiling price of $16.00 per GJ (approximately $17.30 per mcf). The transaction of this collar is consistent with policies established by the Board of Directors of Penn West. Penn West Energy Trust is a senior oil and natural gas energy income trust based in Calgary, Alberta that trades on the Toronto Stock Exchange under the symbol PWT.UN. PENN WEST ENERGY TRUST Toll-Free:

16 NEWS RELEASE PENN WEST ENERGY TRUST ANNOUNCES A 19 PERCENT INCREASE TO ITS CASH DISTRIBUTIONS FOR IMMEDIATE RELEASE, Monday, October 17, 2005 PENN WEST ENERGY TRUST (TSX PWT.UN) announces a $0.31 per trust unit cash distribution payable on November 15, 2005 (Calgary, October 17, 2005) /CNW/ - Penn West Energy Trust ( the Trust ) is pleased to announce that, effective for the October 2005 distribution, it is increasing its monthly distribution by 19 percent to $0.31 per trust unit. The October 2005 distribution is payable on November 15, 2005 to unitholders of record on October 31, The ex-distribution date is October 27, In implementing its conversion in May of 2005, the Trust set its initial monthly distribution at $0.26 per unit, subject to periodic review based on asset performance, capital requirements and commodity prices. As a result of its most recent review, the Board of Directors approved the increase in the distribution rate to reflect the following; o current and forward commodity prices that have exceeded initial projections; o the implementation of a hedging program to increase the likelihood that realized future commodity prices will be in line with the revised projections; o the strong level of interest shown by other industry participants in the Trust s undeveloped land base; o anticipated production levels; and o capital requirements for 2006 and beyond. The distribution increase is not expected to impair the Trust s ability to fund its 2006 capital program from internally generated sources. Penn West Energy Trust is a senior oil and natural gas energy income trust based in Calgary, Alberta that trades on the Toronto Stock Exchange under the symbol PWT.UN. PENN WEST ENERGY TRUST Toll-Free:

17 NEWS RELEASE PENN WEST ENERGY TRUST ANNOUNCES CASH DISTRIBUTION FOR NOVEMBER 2005 FOR IMMEDIATE RELEASE, Monday, November 21, 2005 PENN WEST ENERGY TRUST (TSX PWT.UN) is pleased to confirm cash distributions for November 2005 (Calgary, November 21, 2005) /CNW/ - Penn West Energy Trust confirmed today its November 2005 cash distribution will be $0.31 per trust unit, payable on December 15, The exdistribution date is November 30, 2005 and the record date is November 28, Penn West Energy Trust is a senior oil and natural gas energy income trust based in Calgary, Alberta that trades on the Toronto Stock Exchange under the symbol PWT.UN. PENN WEST ENERGY TRUST Toll-free:

18 NEWS RELEASE PENN WEST ENERGY TRUST ANNOUNCES MAJOR MULTI WELL FARMOUT AGREEMENT FOR IMMEDIATE RELEASE, Thursday, December 1, 2005 PENN WEST ENERGY TRUST (TSX PWT.UN) is pleased to announce a multi well farmout agreement (Calgary, December 1, 2005) /CNW/ - Penn West Petroleum Ltd. ( Penn West ), as administrator of Penn West Energy Trust, is pleased to announce that it has entered into a farmout letter agreement (the Agreement ) with Apache Canada Ltd. ( Apache ), effective November 28, The Agreement encompasses approximately 566 gross sections (362,240 acres) of land in the Amigo-Zama-Shekilie areas of Northern Alberta. The transaction is subject to regulatory approval. Apache has committed to drill, test and complete a minimum of 50 wells on these lands, targeting shallow, medium and deep geologic horizons including the Bluesky, Sulphur Point and Keg River formations. Apache will earn a predetermined working interest on the lands which it can validate, subject to a no deductions, non convertible gross overriding royalty interest ( NCGORR ) on future production volumes. Depending on its drilling success, Apache will have the option to continue drilling additional wells pursuant to the Agreement. In addition, Apache will commit to shooting a minimum of 45 square miles of 3D seismic over the lands and will reenter, test and recomplete a further 10 existing wells to earn Penn West s interests, also subject to a NCGORR with no deductions. In conjunction with the Agreement, Penn West will sell its remaining production in the Shekilie area to Apache for the purchase price of $1,500, Penn West Energy Trust is a senior oil and natural gas energy income trust based in Calgary, Alberta that trades on the Toronto Stock Exchange under the symbol PWT.UN. PENN WEST ENERGY TRUST Toll-free:

19 NEWS RELEASE PENN WEST ENERGY TRUST INTRODUCES DISTRIBUTION REVINVESTMENT AND OPTIONAL TRUST UNIT PURCHASE PLAN FOR IMMEDIATE RELEASE, Thursday, December 8, 2005 PENN WEST ENERGY TRUST (TSX PWT.UN) announces the implementation of a distribution reinvestment plan (Calgary, December 8, 2005) /CNW/ Penn West Energy Trust (the Trust ) is pleased to announce the implementation of a Distribution Reinvestment and Optional Trust Unit Purchase Plan (the Plan ). The Plan provides eligible holders of the Trust s units the opportunity to reinvest monthly cash distributions to acquire additional units at a potential discount without having to pay commissions, service charges or brokerage fees. At the discretion of Penn West Petroleum Ltd. (the Company ), administrator of the Trust, units for the reinvestment of distributions will be acquired in the open market at prevailing prices or issued from treasury at 95 percent of the average market price. While the Company expects units will be issued from treasury at a discount to satisfy the distribution reinvestment component of the Plan, no assurances can be made that units from treasury will be available. Participants in the distribution reinvestment component of the Plan may also purchase additional units under the optional trust unit purchase component of the Plan, subject to a monthly maximum of $5,000 and a minimum of $500. Optional cash purchase units will be acquired in the open market at prevailing prices or issued from treasury at the average market price (without a discount). Unitholders who are not a resident of Canada may not participate in the Plan unless otherwise provided by the Trust. Unitholders who hold their units through a broker, financial institution or other nominee ( beneficial owners ) must enrol for distribution reinvestment through their nominee holder. The full text of the Plan and the Distribution Reinvestment Authorization and Optional Cash Payment Forms will be mailed to registered unitholders in the near future. These documents may also be obtained on the Penn West Energy Trust website at For the Plan to be in effect for the December 2005 distribution (paid in January, 2006), the agent, CIBC Mellon Trust Company, must receive the required forms by December 22, Completed enrolment forms may be submitted by fax or mail. Penn West Energy Trust is a senior oil and natural gas energy income trust based in Calgary, Alberta that trades on the Toronto Stock Exchange under the symbol PWT.UN. PENN WEST ENERGY TRUST Suite 2200, 425 First Street S.W. Calgary, Alberta Toll-Free T2P 3L8

20 NEWS RELEASE PENN WEST ENERGY TRUST ANNOUNCES CASH DISTRIBUTION AND NATURAL GAS HEDGES FOR IMMEDIATE RELEASE, Wednesday, December 21, 2005 PENN WEST ENERGY TRUST (TSX PWT.UN) is pleased to confirm cash distributions for December 2005 and to announce additional 2006 natural gas hedges (Calgary, December 21, 2005) /CNW/ - Penn West Energy Trust (the Trust ) confirms that its December 2005 cash distribution will be $0.31 per trust unit payable on January 13, 2006 to unitholders of record on December 30, The ex-distribution date is December 28, The Trust recently entered into additional AECO natural gas collars on 30,000 gigajoules ( GJ ) per day for the six-month period from April 1 to September 30, These collars were transacted with an average floor price of $8.42 per GJ (approximately $9.09 per mcf) and an average ceiling price of $14.00 per GJ (approximately $15.12 per mcf). The volume hedged by these contracts represents approximately 10 percent of the Trust s expected 2006 natural gas production and approximately five percent of total expected production on a barrel of oil equivalent (6 to 1) basis during the contracted period. In addition, 15,000 GJ per day of AECO natural gas collars were transacted for the October 1 to December 31, 2006 period at a floor price of $8.50 per GJ (approximately $9.18 per mcf) and a ceiling price of $16.10 per GJ (approximately $17.39 per mcf). The volume hedged by these contracts represents approximately five percent of the Trust s expected 2006 natural gas production and approximately two percent of total expected production on a barrel of oil equivalent (6 to 1) basis during the contracted period. The transaction of these collars is consistent with policies established by the Board of Directors of Penn West. Penn West Energy Trust is a senior oil and natural gas energy income trust based in Calgary, Alberta that trades on the Toronto Stock Exchange under the symbol PWT.UN. PENN WEST ENERGY TRUST Toll-Free: